abe's Blogs

I know what you mean Abe. I had it once before your large cup. Never came back into it unfortunately. Yesterday I was in the dentist chair and it was looking me square in the eye. Of course I thought,,,, boy that's one that I didn't handle correctly.

I love that each of the 6 biggest daily blue bars in the past 7 weeks occurs higher and higher. Today's low volume test of the 20 day also seems positive. It did not run 20% from the pivot point in less than 3 weeks, but the run up off the 50 day was 28% in 3weeks. That kind of quickness, I like.

Even with all the Sales growth, EPS growth, reset base count, twin towers of weekly volume heading higher, leadership in the first two months of the market turning higher, and a pocket pivot launch from the 10 dma, 20% & seven weeks from the December flat base was all this rally could muster.

Question Abe ... from a newbie still learning ... in Chapter 1 of HTMMIS, most of the charts (Burroughs Adding Machines-1926 & onward) have, on the LEFT side of the chart, a log scale "Price = 20*EPS" ... I understand its correlation with the graph BUT can you tell me what the SIGNIFICANCE OF THE SMALL ARROW THATS LOCATED ON THE SAME LOG SCALE ? ... it appears to be at different levels/numbers on different stock charts ... Thanks for any help!

Great question. I am pretty sure it refers to the point on the chart when the price was at 20 x eps. For example, Burroughs hit 20 x eps the first week of December 1928. The eps were 2.10 and the price was 42